EDMONTON, Nov. 28, 2016 /CNW/ - AutoCanada Inc.
("AutoCanada") (TSX: ACQ) announced today that it has entered into
an agreement to purchase all of the operating assets of 993527
Ontario Limited, which operates Guelph Hyundai, located in
Guelph, Ontario (the
"Dealership"). The transaction is subject to customary closing
conditions and approvals and is expected to close within 30
days.
As part of the transaction, AutoCanada will purchase the
Dealership lands and 29,726 square foot facility with a 14 car
showroom and 14 service bays. This new facility was constructed in
2014 and was the first Hyundai dealership in Canada to reflect the new Global Dealership
Space Identity (GDSI) of Hyundai. In 2015, this Dealership retailed
673 new vehicles and 173 used vehicles, with an annual revenue of
approximately $31 million.
"We are extremely pleased to welcome Guelph Hyundai into our
Ontario dealer group. The
dealership recently owned and operated by Graham Dennis has a long history in the
Guelph community, serving their
customers for decades. AutoCanada is pleased to add to our cluster
dealership model in the Guelph
area and increase our business in Ontario" stated Steven Landry, Chief
Executive Officer of AutoCanada.
About AutoCanada Inc.
AutoCanada is one of Canada's
largest multi-location automobile dealership groups, currently
operating 54 franchised dealerships, comprised of 62 franchises, in
eight provinces and has over 3,800 employees. AutoCanada currently
sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC,
Buick, Cadillac, Infiniti, Nissan,
Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, KIA, BMW and MINI
branded vehicles. In 2015, our dealerships sold approximately
62,800 vehicles and processed approximately 848,000 service and
collision repair orders in our 912 service bays during that
time.
Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. All statements other than statements of historical
fact contained in this press release may be forward-looking
statements and forward-looking information. In particular,
forward-looking information and statements in this press release
include, but are not limited to, the receipt of requisite approvals
for the acquisition and the projected strength of the Ontario automotive retail market. These
forward-looking statements and information are based on certain key
expectations and assumptions made by AutoCanada, including the
assumption that all necessary approvals will be obtained. Although
AutoCanada believes that the expectations and assumptions on which
such forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information as AutoCanada cannot
give any assurance that they will prove to be correct. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the risk that all requisite
approvals will not be obtained for the acquisition and the
acquisition will not be completed as proposed or at all and general
economic, market and business conditions in Ontario. Readers are cautioned that the
foregoing list of risks and uncertainties is not exhaustive.
Additional information on these and other risk factors that could
affect AutoCanada's operations, financial results and the
completion of the proposed acquisition are included in AutoCanada's
annual information form and the other disclosure documents filed by
AutoCanada with securities regulatory authorities which may be
accessed through the SEDAR website at www.sedar.com. The
forward-looking statements and information contained in this press
release are made as of the date hereof and AutoCanada does not
undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Additional information about AutoCanada Inc. is available at
www.sedar.com and the Company's website at www.autocan.ca.
SOURCE AutoCanada Inc.